INVESTMENT SECURITIES

3 Months Ended

Mar. 31, 2014

Investments, Debt and Equity Securities [Abstract]

INVESTMENT SECURITIES

INVESTMENT SECURITIES

Components of investment securities are as follows (in thousands):

	March 31, 2014		December 31, 2013
Available-for-sale securities	$	8,123	$	7,522
Trading securities	977		317
Total investment securities, at fair value	$	9,100	$	7,839

Available-for-sale securities.  The following table discloses the pre-tax unrealized gains (losses) relating to the Company’s investments in available-for-sale securities (in thousands):

	Cost or Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
March 31, 2014
CLO securities	$	5,844	$	1,298	$	(147	)	$	6,995
Equity securities	886		248		(6		)	1,128
Total	$	6,730	$	1,546	$	(153	)	$	8,123
December 31, 2013
CLO securities	$	5,971	$	1,315	$	(196	)	$	7,090
Equity securities	208		232		(8		)	432
Total	$	6,179	$	1,547	$	(204	)	$	7,522

CLO securities.  The CLO securities represent the Company’s retained equity interest in ten CLO issuers that CVC Credit Partners (see Note 8) manages at March 31, 2014 and December 31, 2013.  The fair value of these retained interests is impacted by the fair value of the investments held by the respective CLO issuers, which are sensitive to interest rate fluctuations and credit quality determinations. The Company is required to maintain a minimum investment of $2.0 million (par value) in the subordinated notes of one of the CLO issuers, Apidos CLO II.

Equity securities.  The Company holds 18,972 shares of TBBK common stock.  This investment is pledged as collateral for one of the Company’s secured corporate credit facilities. The Company also holds 10,000 shares of DIF with a cost basis of $100,000. During the three months ended March 31, 2014, the Company purchased 749,976 units of RREGP for $677,400.

Trading securities. The Company had net gains on trading securities of $117,000 and $1.3 million during the three months ended March 31, 2014 and 2013, respectively, including unrealized losses of $71,000 and unrealized gains of $745,000, respectively, which were included in Financial Fund Management Revenues on the consolidated statements of operations.

Unrealized losses in available-for-sale securities, along with their related fair value, and aggregated by the length of time the investments were in a continuous unrealized loss position, are as follows (in thousands, except number of securities):

	Less than 12 Months							More than 12 Months
	Fair Value		Unrealized Losses			Number of Securities		Fair Value		Unrealized Losses		Number of Securities
March 31, 2014
CLO securities	$	2,292	$	(147	)	3		$	—	$	—	—
Equity securities	771		(6		)	2		—		—		—
Total	$	3,063	$	(153	)	$	5	$	—	$	—	—
December 31, 2013
CLO securities	$	2,312	$	(196	)	3		$	—	$	—	—
Equity securities	92		(8		)	1		—		—		—
Total	$	2,404	$	(204	)	4		$	—	$	—	—

Other-than-temporary impairment losses.  In the three months ended March 31, 2014 and 2013, the Company recorded charges of $0 and $214,000, respectively, for the other-than-temporary impairment of certain of its investments in CLOs, primarily those with investments in bank loans.